A number of taxpayers file their returns with the Jakarta Tax Office in Tanah Abang, Central Jakarta. (Source: Jakarta Post) Hanoi (VNA) - Indonesia is set to delay import duties and corporateincome tax payments for six months while also expediting the repayment ofoverpaid taxes in new fiscal measures to shield the economy as the COVID-19outbreak pressures businesses.
Coordinating Economic Minister Airlangga Hartarto said on March 11 the fiscalstimulus aims to stimulate manufacturing activity, adding that the government isfinalising the supporting regulations to enact such policy, according to theJakarta Post newspaper.
The stimulus package is expected to be implemented in April after preparing thelegal background.
Manufacturing industries have complained of raw materials supply disruptionthat has crippled factories across Indonesia. Twenty to 50 percent of rawmaterials for the country’s industries are sourced from China, Indonesia’sbiggest trade partner.
According to Industry Minister Agus Gumiwang Kartasasmita, the stimulus forimport taxes aims to fulfil industry needs of raw materials.
Meanwhile, Finance Minister Sri Mulyani Indrawati said the move to providethese incentives takes aim at relieving industries’ burden caused by the disease.
The government is also set to temporarily exempt manufacturing workers fromincome tax payment to relieve workers’ burden, she said.
The minister has warned economic growth could weaken to 4.7 percent this yearfrom 5.02 percent in 2019 amid increasing business disruptions caused by the outbreak./.
VNA
